New Delhi, May 12: Posting their strongest four-week rally in the current calender year, the benchmark BSE S&P Sensex and NSE CNX Nifty closed at 28-month high during the extended week under review on the back of across-the-board buying triggered by firm global cues amid consistent foreign fund inflows despite some negative factors.
The BSE and NSE were opened on Saturday (May 11) for a short period (from 11.15 am to 12.45 pm) as the former tested its disaster recovery software.
Improvement in industrial production in March and Congress' impressive victory in Karnataka Assembly polls also contributed in improving the market sentiment.
Buying was so strong that all 13 sectoral indices closed in the green, gaining between 0.29 per cent and 4.67 per cent, with FMCG, auto, consumer durable, banking, IT and teck leading the pack.
Second-line stocks were also in demand on renewed buying by retail investors but they slightly underperformed the heavyweight-laden Sensex.
The Bombay Stock Exchange 30-share barometer resumed the week almost stable but later rallied above 20,000-mark to a high of 20,146.83 before settling at 20,122.32, logging a sharp rise of 546.68 points, or 2.79 per cent. The key index had ended at 20,184.74 on January 6, 2011.
In its straight four weeks of rally, the Sensex has zoomed by a whopping 1,879.76 points, or 10.30 per cent, surpassing five weeks of gains logged in September 2012 when it had spurted by 1,508.90, or 8.66 per cent.
The wide-based 50-issue CNX Nifty of the NSE flared up by 163.25 points, or 2.75 per cent, to end above 6,100-mark at 6,107.25 on Saturday, its highest closing since January 4, 2011 when it had finished at 6,146.35.
Brokers said trading sentiment improved as data showed the Index of Industrial Production (IIP) rose by 2.5 per cent during March, raising hopes of GDP growth crossing 6 per cent level in the current fiscal.
Strong rally in global markets, where some of the indices closed at their multi-year highs – the Dow Jones Industrial Average on Wall Street closed above 15,000-mark for the first time on upbeat US labour force report – also kept the market tempo upbeat.
Market shrugged off some negative factors.
Banking stocks were in the limelight after media website Cobrapost alleged that 23 major banks and insurance companies were involved in money laundering.
Fall in the HSBC Composite Output Index to 50.5 in April, slowest pace of growth in one-and-a-half years, from 51.4 in March and CBI's fresh affidavit in the Supreme Court, giving details of who all suggested changes in the agency's draft status report on coal scam, could not stem the rise.
Rakesh Goyal, Senior Vice-President, Bonanza Portfolio Ltd, said: "Many of the global indices are trading near their record highs and overall market sentiment is bullish. Investor confidence has risen as FIIs continue to pump in liquidity into the market."
"Markets have been moving up at a fast pace in the past few weeks on the back of supportive global markets, consistent FII flows and in-line/better-than-expected quarterly results," said Dipen Shah, Head of Private Client Group Research, Kotak Securities.
